A milestone day for the recovery. For the first time since the correction began, zero sectors are in RISK OFF. The composite has reached a new recovery high at +58, SPY has pushed to $686.10, and the VIX has dropped to 18.2 — firmly in normal territory. The short-term holds at +80 RISK ON with 75% of stocks above their 20-day moving averages. The medium-term has improved to +25 CHOP with the 50-day breadth crossing the 50% mark at 52%. The long-term has strengthened to +67, the highest long-term reading since the correction, with 55% above the 200-day MA. Both Consumer Discretionary and Financials have exited RISK OFF, while Communication Services has entered RISK ON — bringing the RISK ON count to 6, the highest of the recovery.

Sector Leadership

6 sectors RISK ON, 5 CHOP, 0 RISK OFF — full participation for the first time:

💡 What We’re Watching

• Zero sectors in RISK OFF for the first time since the correction began — This is the broadest participation we have seen. Both Consumer Discretionary and Financials have exited RISK OFF, and Communication Services has entered RISK ON. The RISK OFF count has traveled from 6 at the correction low to 0 today. Every sector is now either in CHOP or RISK ON.
• Communication Services enters RISK ON — This is a notable shift. The long-term score surged to +65, the medium-term improved to -10, and the short-term is at +60. As a sector that includes major names like Meta and Alphabet, its transition to RISK ON adds significant market cap weight to the recovery leadership.
• Technology improves to +27 — approaching RISK ON threshold — Tech’s short-term has surged to +75, the medium-term has improved to -15, and the long-term is at +45. If Technology transitions to RISK ON, it would bring 7 of 11 sectors into RISK ON — a level of breadth that typically characterizes the early stages of a new bull phase.
• 50-day breadth crosses 50% — medium-term recovery gaining traction — With 52% of stocks above their 50-day MA, the medium-term breadth has crossed the 50% threshold for the first time since the correction. The 200-day breadth has also expanded to 55%. Both SPY and IWM remain above all major moving averages.

The Bottom Line

The recovery has reached full breadth. Zero sectors in RISK OFF, six in RISK ON, the composite at a new high, and volatility fully normalized at 18.2. SPY at $686.10 has recovered over $50 from the March 30 correction low of $634, a gain of more than 8% in two weeks.

In our view, the elimination of all RISK OFF sectors is the clearest sign yet that the market has moved beyond correction recovery and into a new phase. The question is no longer about whether the correction is over — it is about where the market goes from here. Technology at +27 and approaching RISK ON would be the next significant development to watch.

The RSI at 68 remains near overbought territory, and the medium-term at +25 CHOP has not yet returned to RISK ON. A period of consolidation would be healthy and normal at this stage. The underlying breadth and sector participation suggest that any pullback is more likely to be a pause than a reversal.